Transcript:
Workarounds Businesses Are Using Today
0:01
Hi, this is John Heinrich from The Small Business Success School. A couple of comments on the tariff situation. We’ve got all kinds of variations among my clients. Even my next-door neighbor, who is a lawyer, has a client, and this is kind of interesting, who is based here in Scottsdale. But imports parts from China to Canada.
0:29
Assembles them in Canada, brings them across the Canadian-US border at much lower tariffs, and probably saves a bunch of money compared to what might happen if her client directly shipped the parts to the United States. We’ve had another one with a bunch of exercise equipment that was tied up in a Chinese export port because of the tariffs with the United States.
1:00
We’ve had a third who is actively shifting production facilities to Vietnam because Vietnam has somewhere between zero and 10% tariffs with the United States. So Trump’s action on the tariffs has kind of scrambled the world order, and it’s kind of interesting. Your own situation will determine exactly how much the tariffs are going to impact you and from somewhere to none personally.
1:33
And this is a view that’s not widely shared. The United States has probably got Xi and China pretty well in a circle with countries who have favorable trade deals with us and to them. And eventually, he will come to his senses, I think, because their exports to the United States are just too big to have stopped dead in their tracks.
1:58
She should probably go read The Art of the Deal before he continues the negotiation. So that’s our thoughts on a Monday morning or Tuesday morning, actually about noon, Arizona time.
2:13
Thanks for watching. Thanks for taking the courses, and we look forward to seeing you down the road.
Transcript:
Avoiding a 75% Tariff Through Routing
0:01
Good morning. This is John Heinrich from the Small Business Success School with the tariff tik top. Easy for you to say on Friday morning. Anyway, I wanted to give you an example of how the tariffs seem to be actually working. I have a prospective client who has $125,000 worth of exercise equipment, which is stuck in China.
0:25
Now, if he manages to get the stuff stuck out of China when it comes into the US, it will face a 75% tariff. Now, what he can do is transfer the equipment to Vietnam, which has a zero tariff with the United States. Vietnam can ship it to the United States, which is negotiating a zero tariff with Vietnam so it can get the goods into the United States with a zero tariff.
0:57
This is unusual, but it’s entirely possible. And I so advised him. So the way this works is and not a lot of people understand this, is if you export stuff to China, the ideal thing would be to get the Chinese tariff down to the 75% that we have, they’re probably not gonna go all the way down, but they might go partial the way down.
1:23
So that’s just a short vignette on how the tariffs work and how they affect American enterprise.